The problems with traffic light indicators evaluating performance

Point-in-time evaluations fail to reflect the effect of variation over time

The widespread use of red, amber, green approaches to data analysis is everywhere. The phrase ‘red, amber, green’ refers to graphical data displays that use colour coding of individual data values based on whether this value is on the right (green) or wrong (red) side of a target value. Often amber or yellow is used to indicate data values that are somewhere between ‘right’ and ‘wrong’.

Figure 1. Monthly counts of unwanted events
Figure 1. Monthly counts of unwanted events. Horizontal line: upper acceptance limit. Red bars: unacceptable values. Green bars: acceptable values.

Figure 1 shows the monthly count of a certain type of unwanted incident in mental healthcare. The horizontal line represents the target value of 10.5. That is, we do not want more than 10 incidents per month. Red bars show months above target. Green bars show months below target.

The data display in figure 1 is formally correct (green is better than red). However, it fails to convey a very important message while at the same time suggesting a false message. Figure 1 does not tell to what degree chance may be responsible for the observed variation between monthly counts. On the contrary, it suggests that different, assignable causes are producing red and green results. This often leads to actions being taken on red results, while green results are left alone or even celebrated. In its worst form, red, amber, green is used not even in conjunction with a time series but simply showing the last data point (week, month or quarter). However, if red and green results are all products of the same random process, this strategy is pointless.

Figure 2. Control chart of data from figure 1
Figure 2. Control chart of data from figure 1 showing common cause variation. CL, centre line (mean); UCL, upper control limit.

This is best illustrated using a control chart, with control limits that represent the limits of the random variation in data (figure 2).

The control chart in figure 2 shows that the monthly number of incidents is consistent with common cause variation because all data points are between the control lines (the lower control line is negative and not shown). That is, there is no reason to believe that the 3 months that are above target represent special causes — they are just as typical of the current process as the rest of the months on the chart. It follows that an improvement strategy should target the process as a whole investigating the common causes that affect all the incidents rather than look for special causes.

Furthermore, taking separate action on months above target with no special cause may be harmful for at least two reasons. First, actions that are applied in an on-off manner based on common cause variation will in fact increase the variation. Second, this strategy will inevitably create confusion and frustration within the organisation because it will not work and because the staff is repeatedly asked to change procedures and working habits without results getting any better.

Improvement Strategies

The distinction between common and special cause variation is crucial because the two types of variation require different improvement strategies.

Common Cause Variation

Special Cause VariationSpecial Cause Variation

In general, special causes, if present, should be investigated first, and their root causes identified in order to stabilise the process BEFORE applying a common cause improvement strategy.

References

  1. Anhøj J, Hellesøe AMB. The problem with red, amber, green: the need to avoid distraction by random variation in organisational performance measures BMJ Qual Saf 2017;26:81-84.